COVID-19: Those earning above £19.5k should pay more tax after pandemic to help fix UK finances, says think-tank

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Your thoughts on this?

news.sky.com/story/covid-19-those-earning-above-19-5k-should-pay-more-tax-to-help-fix-finances-12130088

How should the debt be clawed back? What would you do if you were government to raise the money?

Would it have been cheaper to just let all the business & jobs closed go to the wall?

@Myalternate fair enough. I guess I was thinking more about the group of retirees living on good pensions in nice houses.

In many ways I’d rather see an increase in inheritance tax than anything else. Surely it’s better to take tax there...... rather than from people who have living costs, are supporting children, and are paying back into the economy.

In meantime, MNers, often loudly full of shouting about how virus measures should be stricter, no price to pay is too high -- are moaning about the inevitable higher tax bill. Making crazy suggestions like put the tax on the furloughed or Jeff Bezos. It's like you didn't know what you were supporting all this time...

Yeah, the ones nice & safe wfh or retired who relied on others to work out of the home to facilitate that as I assume most weren't off grid. With their online food deliveries & amazon purchases who wanted a lockdown more like China 🤦🏻‍♀️

People who work in hospitality on MW are likely to earn £21.5k (based on a 48hr week, which is par for the course).

So we are talking about taxing Minimum Wage staff who have had to survive on less than 80% income (less because no tips and no overtime) for nearly a year through no fault of their own.

Bearing in mind hospitality and retail is often 0hr contract work and even when we could work this year it was on reduced hrs due to the ridiculous curfew.

And furlough pay is taxable and NICable exactly the same as wages, so we have been contributing all the way through.

Well hopefully they won't just target people working for their money and include people not working for their money, investments, pensions etc.

@scottish83

Targeting those who have benefited most from Government money would be a good place to start. So furloughed workers, restaurants who took part in eat out to help out, etc.

Those of us who have helped kept the country running (we aren't all key workers, though a lot of us support key worker activities) by working and paying taxes should be insulated from such debt repayments.

I ageee with this

FURLOUGHED WORKERS ARE STILL PAYING TAX

@NoSleepInTheHeat but people furloughed still paid tax?

@NoSleepInTheHeat furloughed workers are paying tax still so you are "agreeing" with a nonsense post.

@NoSleepInTheHeat why do you think it's the fault of hospitality or travel workers that they couldn't work?

In many ways I’d rather see an increase in inheritance tax than anything else.
Completely agree.

And furloughed people are still helping keep the country running by paying taxes and spending. If they were just made to go on benefits they wouldn't be paying tax at all.

While I agree inheritance tax encourages inequality it is deeply unpopular & those who it should target will likely still be able to avoid it.

@scottish83

Targeting those who have benefited most from Government money would be a good place to start. So furloughed workers, restaurants who took part in eat out to help out, etc.

Those of us who have helped kept the country running (we aren't all key workers, though a lot of us support key worker activities) by working and paying taxes should be insulated from such debt repayments.

This!

Furloughed workers are going to be really High risk of unemployment when the scheme ends. I think nearly everyone is going to have to pay more tax, for many years to come.

Happy to.

Honestly, we will all pay for it one way or another. I expect income taxes will go up across the board and the Treasury will take a long, hard look at VAT/council tax/road tax etc. I would like to see a full overhaul of the tax system to close loopholes and offshore trusts, but I can't see it happening any time soon.

[quote Waxonwaxoff0]@SittinOnTheDockOfTheBay what a load of shite.[/quote]
Because it would affect you? You have benefitted from furlough but think that those who have worked throughout should pay for your furlough?

@Kendodd

Well hopefully they won't just target people working for their money and include people not working for their money, investments, pensions etc.

So you think that those in receipt of furlough should be targeted?

We haven’t ‘benefitted from furlough’.

The govt forced us out of work and compensated us with 80% of our income. It wasn’t a choice or a jolly holiday.

We’ve paid tax and NIC throughout, employers still have to make NI contributions as well so it’s not zero cost to them.

The govt benefits from not having mass unemployment and no pubs or high street shops left. We aren’t the winners here.

In meantime, MNers, often loudly full of shouting about how virus measures should be stricter, no price to pay is too high -- are moaning about the inevitable higher tax bill. Making crazy suggestions like put the tax on the furloughed or Jeff Bezos. It's like you didn't know what you were supporting all this time...

This. How did you all think this would be paid for - the magic money tree?

Well hopefully they won't just target people working for their money and include people not working for their money, investments, pensions etc

People on pensions may be retired now, but they’ve worked hard all their lives for their pensions and have planned a retirement based on the money they have, with no means to earn any more. Why should they be clobbered?

It’s the working rich (let’s say people earning £80k or more per annum) who should pay for this.

I would like to see a full overhaul of the tax system to close loopholes and offshore trusts, but I can't see it happening any time soon.

Indeed.

@Dongdingdong

In meantime, MNers, often loudly full of shouting about how virus measures should be stricter, no price to pay is too high -- are moaning about the inevitable higher tax bill. Making crazy suggestions like put the tax on the furloughed or Jeff Bezos. It's like you didn't know what you were supporting all this time...

This. How did you all think this would be paid for - the magic money tree?

Well hopefully they won't just target people working for their money and include people not working for their money, investments, pensions etc

People on pensions may be retired now, but they’ve worked hard all their lives for their pensions and have planned a retirement based on the money they have, with no means to earn any more. Why should they be clobbered?

It’s the working rich (let’s say people earning £80k or more per annum) who should pay for this.

It is a society issue and as a society we should all have to contribute. Don't be daft enough to assume that higher earners are sat on their pots of money. Many will live to their means - just like those earning less. Let's not clobber people who earn more like it's their punishment. But do I think we should pay more in the pound? Yes I do. Everyone should. And that was my view pre Covid. Should that amount grow with earnings? Yes it should. But we all should be doing our bit.

@SittinOnTheDockOfTheBay I am not furloughed. I was furloughed for 4 months from April until August. I have been back at work since then. I am on minumum wage so I can assure you I did not "benefit" getting only 80% of my wage. Bitterness is never a good look.